The World Bank said it will allocate US$4.2 billion in concessional loans to Vietnam from 2012 to 2016, the largest package the bank has ever approved for the country.

The allocation will come from the International Development Association, an arm of the World Bank that offers funding resources for low income countries. It is part of a new partnership strategy launched Thursday by the Washington-based lender and Vietnam's Ministry of Planning and Investment.

Under the strategy, Vietnam will also have access to resources from the International Bank of Reconstruction and Development, estimated to be around $770 million through mid-2014.

The World Bank said the new parnership strategy will "support reforms and investments key to Vietnam's transition to a successful middle income country." Its key pillars include increasing competitiveness, sustainability and access to opportunity.

Since 1993 the World Bank has provided nearly $14 billion in financing to help the country sustain growth and fight poverty, it said.